HB-4391, As Passed Senate, June 18, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SENATE SUBSTITUTE FOR                             

                                                                                

                               HOUSE BILL NO. 4391                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the department of education and                 

                                                                                

    certain other purposes relating to education for the fiscal year            

                                                                                

    ending September 30, 2004; to provide for the expenditure of the            

                                                                                

    appropriations; to prescribe the powers and duties of certain state         

                                                                                

    departments, school districts, and other governmental bodies; and to        

                                                                                

    provide for the disposition of fees and other income received by            

                                                                                

    certain legal entities and state agencies.                                  

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

3       Sec. 101.  Subject to the conditions set forth in this act, the             

                                                                                

4   amounts listed in this part are appropriated for the department of          

                                                                                

5   education for the fiscal year ending September 30, 2004, from the           

                                                                                

6   funds indicated in this part.  The following is a summary of the            

                                                                                

7   appropriations in this part:                                                

                                                                                


                                                                                

1   DEPARTMENT OF EDUCATION                                                     

                                                                                

2   APPROPRIATION SUMMARY:                                                      

                                                                                

3       Full-time equated unclassified positions........6.0                     

                                                                                

4       Full-time equated classified positions........427.1                     

                                                                                

5     GROSS APPROPRIATION................................. $     113,459,600    

                                                                                

6       Interdepartmental grant revenues:                                       

                                                                                

7     Interdepartmental grant from corrections academy                          

                                                                                

8       lease.............................................         1,000,000    

                                                                                

9     Total interdepartmental grants and intradepartmental                      

                                                                                

10      transfers.........................................         1,000,000    

                                                                                

11    ADJUSTED GROSS APPROPRIATION........................ $     112,459,600    

                                                                                

12      Federal revenues:                                                       

                                                                                

13    Total federal revenues..............................        65,184,100    

                                                                                

14      Special revenue funds:                                                  

                                                                                

15    Local cost sharing (schools for blind/deaf).........         4,641,600    

                                                                                

16    Local school district service fees..................           150,000    

                                                                                

17    Total local revenues................................         4,791,600    

                                                                                

18    Gifts, bequests, and donations......................           504,200    

                                                                                

19    Private foundations.................................           197,200    

                                                                                

20    Total private revenues..............................           701,400    

                                                                                

21    Total local and private revenues....................         5,493,000    

                                                                                

22    Certification fees..................................         3,130,200    

                                                                                

23    Commodity distribution fees.........................            72,300    

                                                                                

24    Driver fees.........................................         8,128,000    

                                                                                

25    Lansing, Michigan school for the blind rent.........           739,000    

                                                                                

26    Motorcycle license fees.............................             5,000    

                                                                                

27    Student insurance revenue...........................           205,100    


                                                                                

1     Teacher testing fees................................           282,100    

                                                                                

2     Total other state restricted revenues...............        12,561,700    

                                                                                

3     State general fund/general purpose.................. $      29,220,800    

                                                                                

4       Sec. 102.  STATE BOARD OF EDUCATION/OFFICE OF THE                           

                                                                                

5   SUPERINTENDENT                                                              

                                                                                

6       Full-time equated unclassified positions........6.0                     

                                                                                

7       Full-time equated classified positions.........13.0                     

                                                                                

8     Unclassified positions--6.0 FTE positions........... $         404,500    

                                                                                

9     State board/ superintendent operations--13.0 FTE                          

                                                                                

10      positions.........................................         1,874,200    

                                                                                

11    GROSS APPROPRIATION................................. $       2,278,700    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Federal revenues:                                                       

                                                                                

14    Federal revenues....................................         1,128,900    

                                                                                

15      Special revenue funds:                                                  

                                                                                

16    Certification fees..................................            70,700    

                                                                                

17    Private foundations.................................            23,000    

                                                                                

18    State general fund/general purpose.................. $       1,056,100    

                                                                                

19      Sec. 103.  CENTRAL SUPPORT                                                  

                                                                                

20      Full-time equated classified positions.........43.3                     

                                                                                

21    Central support--43.3 FTE positions................. $       4,759,700    

                                                                                

22    Worker's compensation...............................            25,900    

                                                                                

23    Building occupancy charges - property management                          

                                                                                

24      services..........................................         1,345,900    

                                                                                

25    Terminal leave payments.............................           624,000    

                                                                                

26    GROSS APPROPRIATION................................. $       6,755,500    

                                                                                

27        Appropriated from:                                                    


                                                                                

1       Federal revenues:                                                       

                                                                                

2     Federal revenues....................................         4,349,600    

                                                                                

3       Special revenue funds:                                                  

                                                                                

4     Certification fees..................................           256,900    

                                                                                

5     Commodity distribution fees.........................             7,000    

                                                                                

6     Driver fees.........................................            28,100    

                                                                                

7     Local cost sharing..................................            93,400    

                                                                                

8     Motorcycle license fees.............................             5,000    

                                                                                

9     Teacher testing fees................................            12,300    

                                                                                

10    State general fund/general purpose.................. $       2,003,200    

                                                                                

11      Sec. 104.  SCHOOL SUPPORT SERVICES                                          

                                                                                

12      Full-time equated classified positions.........40.4                     

                                                                                

13    School support operations--40.4 FTE positions....... $       4,667,500    

                                                                                

14    GROSS APPROPRIATION................................. $       4,667,500    

                                                                                

15        Appropriated from:                                                    

                                                                                

16      Federal revenues:                                                       

                                                                                

17    Federal revenues....................................         3,946,000    

                                                                                

18      Special revenue funds:                                                  

                                                                                

19    Commodity distribution fees.........................            65,300    

                                                                                

20    Driver fees.........................................           499,900    

                                                                                

21    State general fund/general purpose.................. $         156,300    

                                                                                

22      Sec. 105.  INFORMATION TECHNOLOGY SERVICES                                  

                                                                                

23    Information technology operations................... $       2,514,000    

                                                                                

24    GROSS APPROPRIATION................................. $       2,514,000    

                                                                                

25        Appropriated from:                                                    

                                                                                

26      Federal revenues:                                                       

                                                                                

27    Federal revenues....................................         1,276,900    


                                                                                

1       Special revenue funds:                                                  

                                                                                

2     Certification fees..................................           168,200    

                                                                                

3     Driver fees.........................................            44,800    

                                                                                

4     State general fund/general purpose.................. $       1,024,100    

                                                                                

5       Sec. 106.  SPECIAL EDUCATION SERVICES                                       

                                                                                

6       Full-time equated classified positions.........68.6                     

                                                                                

7     Special education operations--68.6 FTE positions.... $      11,237,800    

                                                                                

8     GROSS APPROPRIATION................................. $      11,237,800    

                                                                                

9         Appropriated from:                                                    

                                                                                

10      Federal revenues:                                                       

                                                                                

11    Federal revenues....................................        11,006,500    

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Certification fees..................................            35,200    

                                                                                

14    State general fund/general purpose.................. $         196,100    

                                                                                

15      Sec. 107.  LANSING, MICHIGAN SCHOOL FOR THE BLIND                           

                                                                                

16  FORMER SITE                                                                 

                                                                                

17    General services.................................... $       1,749,000    

                                                                                

18    GROSS APPROPRIATION................................. $       1,749,000    

                                                                                

19        Appropriated from:                                                    

                                                                                

20      Interdepartmental grant revenues:                                       

                                                                                

21    Interdepartmental grant from corrections academy                          

                                                                                

22      lease.............................................         1,000,000    

                                                                                

23      Special revenue funds:                                                  

                                                                                

24    Gifts, bequests, and donations......................            10,000    

                                                                                

25    Lansing, Michigan school for the blind rent.........           739,000    

                                                                                

26    State general fund/general purpose.................. $               0    

                                                                                

27      Sec. 108.  MICHIGAN SCHOOLS FOR THE DEAF AND BLIND                          


                                                                                

1       Full-time equated classified positions.........93.0                     

                                                                                

2     Michigan schools for the deaf and blind                                   

                                                                                

3       operations--92.0 FTE positions.................... $       9,201,400    

                                                                                

4     Summer institute....................................            90,000    

                                                                                

5     Camp Tuhsmeheta--1.0 FTE position...................           250,100    

                                                                                

6     Private gifts - blind...............................            90,000    

                                                                                

7     Private gifts - deaf................................            50,000    

                                                                                

8     GROSS APPROPRIATION................................. $       9,681,500    

                                                                                

9         Appropriated from:                                                    

                                                                                

10      Federal revenues:                                                       

                                                                                

11    Federal revenues....................................         4,328,800    

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Local cost sharing (schools for blind/deaf).........         4,503,400    

                                                                                

14    Local school district service fees..................           150,000    

                                                                                

15    Gifts, bequests, and donations......................           494,200    

                                                                                

16    Student insurance revenue...........................           205,100    

                                                                                

17    State general fund/general purpose.................. $               0    

                                                                                

18      Sec. 109.  PROFESSIONAL PREPARATION SERVICES                                

                                                                                

19      Full-time equated classified positions.........31.0                     

                                                                                

20    Professional preparation operations--31.0 FTE                             

                                                                                

21      positions......................................... $       5,020,900    

                                                                                

22    Department of attorney general......................            50,000    

                                                                                

23    GROSS APPROPRIATION................................. $       5,070,900    

                                                                                

24        Appropriated from:                                                    

                                                                                

25      Federal revenues:                                                       

                                                                                

26    Federal revenues....................................         2,528,100    

                                                                                

27      Special revenue funds:                                                  


                                                                                

1     Certification fees..................................         2,273,000    

                                                                                

2     Teacher testing fees................................           269,800    

                                                                                

3     State general fund/general purpose.................. $               0    

                                                                                

4       Sec. 110.  FIELD SERVICES                                                   

                                                                                

5       Full-time equated classified positions.........46.9                     

                                                                                

6     Field services operations--46.9 FTE positions....... $       5,868,300    

                                                                                

7     GROSS APPROPRIATION................................. $       5,868,300    

                                                                                

8         Appropriated from:                                                    

                                                                                

9       Federal revenues:                                                       

                                                                                

10    Federal revenues....................................         5,868,300    

                                                                                

11    State general fund/general purpose.................. $               0    

                                                                                

12      Sec. 111.  OFFICE OF SCHOOL EXCELLENCE                                      

                                                                                

13      Full-time equated classified positions.........61.5                     

                                                                                

14    School excellence operations--61.5 FTE positions.... $      10,413,300    

                                                                                

15    GROSS APPROPRIATION................................. $      10,413,300    

                                                                                

16        Appropriated from:                                                    

                                                                                

17      Federal revenues:                                                       

                                                                                

18    Federal revenues....................................         8,818,200    

                                                                                

19    Private foundations.................................            79,400    

                                                                                

20    State general fund/general purpose.................. $       1,515,700    

                                                                                

21      Sec. 112.  GOVERNMENT SERVICES                                              

                                                                                

22      Full-time equated classified positions..........9.1                     

                                                                                

23    Government services operations--9.1 FTE positions... $         572,200    

                                                                                

24    GROSS APPROPRIATION................................. $         572,200    

                                                                                

25        Appropriated from:                                                    

                                                                                

26      Federal revenues:                                                       

                                                                                

27    Federal revenues....................................           420,400    


                                                                                

1     State general fund/general purpose.................. $         151,800    

                                                                                

2       Sec. 113.  SAFE SCHOOLS AND ADMINISTRATIVE LAW                              

                                                                                

3       Full-time equated classified positions.........11.5                     

                                                                                

4     Safe schools operations--2.5 FTE positions.......... $         393,600    

                                                                                

5     Administrative law operations--9.0 FTE positions....           710,000    

                                                                                

6     GROSS APPROPRIATION................................. $       1,103,600    

                                                                                

7         Appropriated from:                                                    

                                                                                

8       Federal revenues:                                                       

                                                                                

9     Federal revenues....................................           532,200    

                                                                                

10      Special revenue funds:                                                  

                                                                                

11    Certification fees..................................           226,100    

                                                                                

12    State general fund/general purpose.................. $         345,300    

                                                                                

13      Sec. 114.  EDUCATION OPTIONS, CHARTERS, AND CHOICE                          

                                                                                

14      Full-time equated classified positions..........8.8                     

                                                                                

15    Education options operations--8.8 FTE positions..... $       1,132,400    

                                                                                

16    GROSS APPROPRIATION................................. $       1,132,400    

                                                                                

17        Appropriated from:                                                    

                                                                                

18      Federal revenues:                                                       

                                                                                

19    Federal revenues....................................           980,200    

                                                                                

20    State general fund/general purpose.................. $         152,200    

                                                                                

21      Sec. 115.  GRANTS AND DISTRIBUTIONS                                         

                                                                                

22  FEDERAL PROGRAMS:                                                           

                                                                                

23    Urgent school renovation............................ $      20,000,000    

                                                                                

24  STATE PROGRAMS:                                                             

                                                                                

25    Christa McAuliffe grants............................ $          94,800    

                                                                                

26    Driver education....................................         7,600,000    

                                                                                

27    National board certification........................           100,100    


                                                                                

1     School breakfast programs...........................        10,370,000    

                                                                                

2     School readiness grants.............................        12,250,000    

                                                                                

3     GROSS APPROPRIATION................................. $      50,414,900    

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Federal revenues:                                                       

                                                                                

6     DED-OESE, urgent school renovation..................        20,000,000    

                                                                                

7       Special revenue funds:                                                  

                                                                                

8     Certification fees..................................           100,100    

                                                                                

9     Driver fees.........................................         7,600,000    

                                                                                

10    Private foundations.................................            94,800    

                                                                                

11    State general fund/general purpose.................. $      22,620,000    

                                                                                

                                                                                

                                                                                

12                                    PART 2                                    

                                                                                

13                     PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

14      Sec. 201.  Pursuant to section 30 of article IX of the state                

                                                                                

15  constitution of 1963, total state spending from state resources under       

                                                                                

16  part 1 for fiscal year 2003-2004 is $41,782,500.00 and state spending       

                                                                                

17  from state resources to be paid to local units of government for            

                                                                                

18  fiscal year 2003-2004 is estimated at $18,960,100.00.  The itemized         

                                                                                

19  statement below identifies appropriations from which spending to units      

                                                                                

20  of local government will occur:                                             

                                                                                

21  GRANTS AND DISTRIBUTIONS                                                    

                                                                                

22  STATE PROGRAMS:                                                             

                                                                                

23    Driver education.................................... $       7,600,000    

                                                                                

24    School readiness grants.............................           990,100    

                                                                                

25    School lunch and breakfast..........................        10,370,000    

                                                                                

26    TOTAL............................................... $      18,960,100    

                                                                                

27      Sec. 202.  The appropriations authorized under this act are                 


                                                                                

1   subject to the management and budget act, 1984 PA 431, MCL 18.1101 to       

                                                                                

2   18.1594.                                                                    

                                                                                

3       Sec. 203.  As used in this act:                                             

                                                                                

4       (a)  "DED-OESE" means the United States department                          

                                                                                

5   of education office of elementary and secondary education.                  

                                                                                

6       (b)  "Department" means the Michigan department of education.               

                                                                                

7       (c)  "District" means a local school district as defined in section         

                                                                                

8   6 of the revised school code, 1976 PA 451, MCL 380.6,                       

                                                                                

9   or a local act school district or public school                             

                                                                                

10  academy as defined in section 5 of the revised school code, 1976 PA 451,    

                                                                                

11  MCL 380.5.                                                                  

                                                                                

12      (d)  "FTE" means full-time equated.                                         

                                                                                

13      Sec. 204.  The department of civil service shall bill departments           

                                                                                

14  and agencies at the end of the first fiscal quarter for the 1% charge       

                                                                                

15  authorized by section 5 of article XI of the state constitution of          

                                                                                

16  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

17  the end of the second fiscal quarter.                                       

                                                                                

18      Sec. 205.  (1) Beginning October 1, a hiring freeze is imposed on           

                                                                                

19  the state classified civil service.  State departments and agencies         

                                                                                

20  are prohibited from hiring any new full-time state classified civil         

                                                                                

21  service employees and prohibited from filling any vacant state              

                                                                                

22  classified civil service positions.  This hiring freeze does not apply      

                                                                                

23  to internal transfers of classified employees from 1 position to            

                                                                                

24  another within a department.                                                

                                                                                

25      (2) The state budget director shall grant exceptions to this                

                                                                                

26  hiring freeze when the state budget director believes that the hiring       

                                                                                

27  freeze will result in rendering a state department or agency unable to      


                                                                                

1   deliver basic services, cause loss of revenue to the state, result in       

                                                                                

2   the inability of the state to receive federal funds, or necessitate         

                                                                                

3   additional expenditures that exceed any savings from maintaining a          

                                                                                

4   vacancy.  The state budget director shall report monthly to the             

                                                                                

5   chairpersons of the senate and house appropriations committees and the      

                                                                                

6   fiscal agencies the number of exceptions to the hiring freeze approved      

                                                                                

7   during the previous month and the reasons to justify the exceptions.        

                                                                                

8       Sec. 206.  Unless otherwise specified, the departments and                  

                                                                                

9   agencies receiving appropriations in part 1 shall use the Internet to       

                                                                                

10  fulfill the reporting requirements of this act.  This requirement may       

                                                                                

11  include transmission of reports via electronic mail to the recipients       

                                                                                

12  identified for each reporting requirement, or it may include placement      

                                                                                

13  of reports on an Internet or Intranet site.                                 

                                                                                

14      Sec. 207.  The department may carry into the succeeding fiscal              

                                                                                

15  year unexpended federal pass-through funds to local institutions and        

                                                                                

16  governments that do not require additional state matching funds.            

                                                                                

17  Federal pass-through funds to local institutions and governments that       

                                                                                

18  are received in amounts in addition to those included in part 1 and         

                                                                                

19  that do not require additional state matching funds are appropriated        

                                                                                

20  for the purposes intended.                                                  

                                                                                

21      Sec. 208.  The department shall provide the state budget director           

                                                                                

22  and the senate and house fiscal agencies with copies of the state           

                                                                                

23  board of education agenda and all supporting documents at the time the      

                                                                                

24  agenda and supporting documents are provided to state board of              

                                                                                

25  education members.                                                          

                                                                                

26      Sec. 209.  (1) Upon receipt of the federal drug free grant, the             

                                                                                

27  department shall allocate $225,000.00 of the grant to the office for        


                                                                                

1   safe schools within the department.  The office for safe schools shall      

                                                                                

2   work with local school boards, law enforcement agencies, community          

                                                                                

3   leaders, and the office of drug control policy for the prevention of        

                                                                                

4   school violence.  The office for safe schools shall develop and             

                                                                                

5   implement, and serve as coordinator of, a statewide clearinghouse for       

                                                                                

6   information, program development, model programs and policies, and          

                                                                                

7   technical assistance on school violence prevention.                         

                                                                                

8       (2) To accomplish its functions under this section, the office for          

                                                                                

9   safe schools shall do all of the following:                                 

                                                                                

10      (a) Evaluate the effectiveness of, and make recommendations to              

                                                                                

11  local school boards concerning public school violence prevention            

                                                                                

12  programs, including, but not limited to, programs aimed at reducing         

                                                                                

13  the possession of weapons and the incidence of other violent behaviors      

                                                                                

14  on school campuses, violence prevention curricula, conflict resolution      

                                                                                

15  and peer mediation training, interagency cooperative referral and           

                                                                                

16  treatment programs, parental involvement programs, and school safety        

                                                                                

17  planning.                                                                   

                                                                                

18      (b) In consultation with appropriate organizations, develop and             

                                                                                

19  distribute to school districts and public school academies a model          

                                                                                

20  code of conduct for pupils.                                                 

                                                                                

21      (c) Coordinate with the office of drug control policy in the                

                                                                                

22  department of community health to ensure that there is a meaningful         

                                                                                

23  linkage between the efforts under this act to provide safe schools and      

                                                                                

24  the initiatives undertaken through that office, including, but not          

                                                                                

25  limited to, school districts' safe and drug-free school plans, and to       

                                                                                

26  facilitate timely applications for and distribution of available grant      

                                                                                

27  money.                                                                      


                                                                                

1       (d) Provide through the Internet the availability to and                    

                                                                                

2   information regarding the state model policy on locker searches, the        

                                                                                

3   state model policy on firearm safety and awareness, and any other           

                                                                                

4   state or local safety policies that the office considers exemplary.         

                                                                                

5       Sec. 210.  The department shall require all public school                   

                                                                                

6   districts to maintain complete records within the personnel file of a       

                                                                                

7   teacher or school employee of any disciplinary actions taken by the         

                                                                                

8   local school board against the teacher or employee for sexual               

                                                                                

9   misconduct.  The records shall not be destroyed or removed from the         

                                                                                

10  teacher's or employee's personnel file except as required by a court        

                                                                                

11  order.                                                                      

                                                                                

12      Sec. 211.  From the general funds appropriated in part 1 for                

                                                                                

13  special education services, the department shall provide funding for        

                                                                                

14  1.0 special education auditors to audit school districts.                   

                                                                                

15      Sec. 212.  From the funds appropriated in part 1 for information            

                                                                                

16  technology, the department shall pay user fees to the department of         

                                                                                

17  information technology for technology related services and projects.        

                                                                                

18  Such user fees shall be subject to provisions of an interagency             

                                                                                

19  agreement between the department and the department of information          

                                                                                

20  technology.                                                                 

                                                                                

21      Sec. 213.  Amounts appropriated in part 1 for information                   

                                                                                

22  technology may be designated as work projects and carried forward to        

                                                                                

23  support department of education projects under the direction of the         

                                                                                

24  department of information technology.  Funds designated in this manner      

                                                                                

25  are not available for expenditure until approved as work projects           

                                                                                

26  under section 451a of the management and budget act, 1984 PA 431,           

                                                                                

27  MCL 18.1451a.                                                               


                                                                                

1       Sec. 214.  The departments and agencies receiving appropriations            

                                                                                

2   in part 1 shall receive and retain copies of all reports funded from        

                                                                                

3   appropriations in part 1.  The department shall follow all federal          

                                                                                

4   guidelines and state laws regarding short-term and long-term retention      

                                                                                

5   of records.                                                                 

                                                                                

6       Sec. 215.  At least 60 days before beginning any effort to                  

                                                                                

7   privatize services, the department shall submit a complete project          

                                                                                

8   plan to the appropriate house and senate appropriations subcommittees       

                                                                                

9   and the fiscal agencies.  The plan shall include the criteria under         

                                                                                

10  which the privatization initiative will be evaluated.  The evaluation       

                                                                                

11  shall be completed and submitted to the appropriate subcommittees of        

                                                                                

12  the house and senate standing committees on appropriations and the          

                                                                                

13  fiscal agencies within 30 months.                                           

                                                                                

14      Sec. 216.  Funds appropriated in part 1 shall not be used for the           

                                                                                

15  purchase of foreign goods or services, or both, if competitively            

                                                                                

16  priced American goods or services, or both, of comparable quality, are      

                                                                                

17  available.                                                                  

                                                                                

18      Sec. 217.  The director of each department receiving                        

                                                                                

19  appropriations in part 1 shall take all reasonable steps to ensure          

                                                                                

20  businesses in deprived and depressed communities compete for and            

                                                                                

21  perform contracts to provide services or supplies, or both.  Each           

                                                                                

22  director shall strongly encourage firms with which the department           

                                                                                

23  contracts to subcontract with certified businesses in depressed and         

                                                                                

24  deprived communities for services, supplies, or both.                       

                                                                                

25      Sec. 218.  (1) The department of management and budget and each             

                                                                                

26  principal executive department and agency shall provide to the senate       

                                                                                

27  and house of representatives standing committees on appropriations and      


                                                                                

1   the senate and house fiscal agencies a monthly report on all personal       

                                                                                

2   service contracts awarded without competitive bidding, pricing, or          

                                                                                

3   rate-setting.  The notification shall include all of the following:         

                                                                                

4       (a) The total dollar amount of the contract.                                

                                                                                

5       (b) The duration of the contract.                                           

                                                                                

6       (c) The name of the vendor.                                                 

                                                                                

7       (d) The type of service to be provided.                                     

                                                                                

8       (2) For personal service contracts of $10,000.00 or more, the               

                                                                                

9   department of management and budget shall provide a monthly report          

                                                                                

10  including all of the following:                                             

                                                                                

11      (a) The total dollar amount of the contract.                                

                                                                                

12      (b) The duration of the contract.                                           

                                                                                

13      (c) The name of the vendor.                                                 

                                                                                

14      (d) The type of service to be provided.                                     

                                                                                

15      (3) The department of management and budget shall provide a                 

                                                                                

16  monthly listing of all bid requests or requests for proposal that were      

                                                                                

17  issued.                                                                     

                                                                                

18      (4) Each principal executive department and agency shall provide a          

                                                                                

19  monthly summary listing of information that identifies any                  

                                                                                

20  authorization for personal service contracts that are provided to the       

                                                                                

21  department of civil service pursuant to delegated authority granted to      

                                                                                

22  each principal executive department and agency related to personal          

                                                                                

23  service contracts.                                                          

                                                                                

24      (5) The department shall not enter into personal service contracts          

                                                                                

25  awarded without competitive bidding, pricing, or rate-setting valued        

                                                                                

26  at more than $10,000.00.                                                    

                                                                                

27      Sec. 219.  The department shall work with the department of state           


                                                                                

1   to ensure that the motorcycle safety education program and grants are       

                                                                                

2   administered in the same manner as in 2002-2003.                            

                                                                                

3       Sec. 220.  The department shall work with the department of                 

                                                                                

4   natural resources to ensure that the off-road vehicle safety training       

                                                                                

5   program and grants are administered in the same manner as in                

                                                                                

6   2002-2003.                                                                  

                                                                                

7       Sec. 222.  Before publishing a list of schools or districts                 

                                                                                

8   determined to have failed to make adequate yearly progress as required      

                                                                                

9   by the federal no child left behind act of 2001, Public Law 107-110,        

                                                                                

10  115 Stat. 1425, the department shall allow a school or district to          

                                                                                

11  appeal that determination.  The department shall consider and act upon      

                                                                                

12  the appeal within 30 days after it is submitted and shall not publish       

                                                                                

13  the list until after all appeals have been considered and decided.          

                                                                                

                                                                                

                                                                                

14  STATE BOARD/OFFICE OF THE SUPERINTENDENT                                    

                                                                                

15      Sec. 302.  From the amount appropriated in part 1 to the state              

                                                                                

16  board of education, the state board of education shall not expend any       

                                                                                

17  funds on travel.                                                            

                                                                                

                                                                                

                                                                                

18  MICHIGAN SCHOOLS FOR THE DEAF AND BLIND                                     

                                                                                

19      Sec. 401.  The employees at the Michigan schools for the deaf and           

                                                                                

20  blind who work on a school year basis shall be considered annual            

                                                                                

21  employees for purposes of service credits, retirement, and insurance        

                                                                                

22  benefits.                                                                   

                                                                                

23      Sec. 402.  For each student enrolled at the Michigan schools for            

                                                                                

24  the deaf and blind, the department shall assess the intermediate            

                                                                                

25  school district of residence 100% of the cost of operating the              


                                                                                

1   student's instructional program.  The amount shall exclude room and         

                                                                                

2   board related costs and the cost of weekend transportation between the      

                                                                                

3   school and the student's home.                                              

                                                                                

4       Sec. 403.  (1) The department may assess rent to any state agency           

                                                                                

5   for the use of any facility at the Michigan school for the blind's          

                                                                                

6   former site in Lansing.  The rental rates and all leasing arrangements      

                                                                                

7   shall be subject to the approval of the department of management and        

                                                                                

8   budget.                                                                     

                                                                                

9       (2) In addition to those funds appropriated in part 1, the                  

                                                                                

10  department may receive and expend additional funds from lease               

                                                                                

11  agreements at the Michigan school for the blind's former site in            

                                                                                

12  Lansing that have been negotiated with the approval of the department       

                                                                                

13  of management and budget.  These funds are appropriated to the              

                                                                                

14  department for operation, maintenance, and renovation expenses              

                                                                                

15  associated with the leased space.                                           

                                                                                

16      (3) Security guards or other patrols at the Michigan school for             

                                                                                

17  the blind's former site shall not be funded through section 108 funds       

                                                                                

18  appropriated for the Michigan schools for the deaf and blind.               

                                                                                

19      (4) If the department leases real property to a person or                   

                                                                                

20  organization that is not a department of state government, the              

                                                                                

21  department shall not expend funds in excess of the lease revenue            

                                                                                

22  received to replace, renovate, or repair that real property.  This          

                                                                                

23  section shall not apply to emergency repairs or costs associated with       

                                                                                

24  technological renovations.                                                  

                                                                                

25      (5) The department shall not lease real property for less than              

                                                                                

26  fair market value.                                                          

                                                                                

27      (6) Unexpended balances of appropriations and any surplus                   


                                                                                

1   restricted revenue for the former school for the blind site in              

                                                                                

2   Lansing, up to $100,000.00 in total, shall not lapse to the state           

                                                                                

3   general fund at the end of the fiscal year.  Any unexpended and             

                                                                                

4   unencumbered funds remaining on September 30, 2004 may be carried           

                                                                                

5   forward as a work project or as restricted revenue and expended for         

                                                                                

6   special maintenance and repairs of facilities at the former Michigan        

                                                                                

7   school for the blind site in Lansing.  The work project shall be            

                                                                                

8   performed by state employees or by contract when necessary at an            

                                                                                

9   estimated cost of $100,000.00.  The estimated completion date of the        

                                                                                

10  work project is September 30, 2005.                                         

                                                                                

11      Sec. 404.  (1) The department may assess rent or lease excess               

                                                                                

12  property located on the campus of the Michigan schools for the deaf         

                                                                                

13  and blind in Flint to private or publicly funded organizations.             

                                                                                

14      (2) In addition to those funds appropriated in part 1, the                  

                                                                                

15  department may receive and expend additional funds from lease               

                                                                                

16  agreements at the Michigan schools for the deaf and blind Flint campus      

                                                                                

17  that have been negotiated with the approval of the department of            

                                                                                

18  management and budget.  These funds are appropriated to the department      

                                                                                

19  for the operation, maintenance, and renovation expenses associated          

                                                                                

20  with the leased space.                                                      

                                                                                

21      (3) Unexpended balances of appropriations for the schools for the           

                                                                                

22  deaf and blind operations, and from proceeds of the sale of surplus         

                                                                                

23  property and facilities at the Michigan schools for the deaf and            

                                                                                

24  blind, up to $250,000.00 in total, shall not lapse to the state             

                                                                                

25  general fund at the end of the fiscal year.  Any unexpended and             

                                                                                

26  unencumbered funds remaining on September 30, 2004 may be carried           

                                                                                

27  forward as a work project or as restricted revenue and expended for         


                                                                                

1   special maintenance and repairs of facilities at the campus of the          

                                                                                

2   Michigan schools for the deaf and blind in Flint.  The work shall be        

                                                                                

3   carried out by state employees, or by contract as necessary, at an          

                                                                                

4   estimated cost of $250,000.00.  The estimated completion date of the        

                                                                                

5   work is September 30, 2005.                                                 

                                                                                

6       Sec. 407.  The department shall report to the house and senate              

                                                                                

7   appropriations subcommittees on education detailed information on the       

                                                                                

8   expenditures made from the amount authorized in part 1 quarterly for        

                                                                                

9   general services for the Michigan school for the blind's former site.       

                                                                                

10      Sec. 408.  The department may assist the department of community            

                                                                                

11  health, other departments, and local school districts to secure             

                                                                                

12  reimbursement for eligible services provided in Michigan schools from       

                                                                                

13  the federal Medicaid program.  The department may submit reports of         

                                                                                

14  direct expenses related to this effort to the department of community       

                                                                                

15  health for reimbursement.                                                   

                                                                                

16      Sec. 409.  (1) The Michigan schools for the deaf and blind may              

                                                                                

17  promote its residential program as a possible appropriate option for        

                                                                                

18  children who are deaf or hard of hearing or who are blind or visually       

                                                                                

19  impaired.  The Michigan schools for the deaf and blind shall                

                                                                                

20  distribute information detailing its services to all intermediate           

                                                                                

21  school districts in the state.                                              

                                                                                

22      (2) Upon knowledge of or recognition by an intermediate school              

                                                                                

23  district that a child in the district is deaf or hard of hearing or         

                                                                                

24  blind or visually impaired, the intermediate school district shall          

                                                                                

25  provide to the parents of the child the literature distributed by the       

                                                                                

26  Michigan schools for the deaf and blind to intermediate school              

                                                                                

27  districts under subsection (1).                                             


                                                                                

1       (3) It is the intent of the legislature that parents continue to            

                                                                                

2   have a choice regarding the educational placement of their deaf or          

                                                                                

3   hard of hearing children.                                                   

                                                                                

4       Sec. 410.  In addition to those funds appropriated in part 1, the           

                                                                                

5   department may receive and expend funds from the mid-Michigan academy       

                                                                                

6   for capital improvements.  The department shall report to the house         

                                                                                

7   and senate fiscal agencies and the state budget office on an annual         

                                                                                

8   basis any expenditures made under this section.  These additional           

                                                                                

9   funds are appropriated specifically for capital improvements                

                                                                                

10  authorized by the department of management and budget and shall be          

                                                                                

11  negotiated as part of the lease agreement.                                  

                                                                                

12      Sec. 411.  The department shall ensure that rental payments made            

                                                                                

13  by each tenant for space at the Michigan school for the blind former        

                                                                                

14  site are used for operation, maintenance, and renovation expenses           

                                                                                

15  associated with the leased space designated in the tenant's lease           

                                                                                

16  agreement.                                                                  

                                                                                

17      Sec. 412.  The department shall provide a report to the house and           

                                                                                

18  senate appropriations subcommittees on the department of education          

                                                                                

19  that details, to the extent information is available or attainable,         

                                                                                

20  the number of blind students in Michigan, the number of teachers            

                                                                                

21  certified to teach Braille, and the extent to which Braille is being        

                                                                                

22  offered and taught to blind or visually impaired students.  This            

                                                                                

23  report shall be submitted by April 1, 2004.                                 

                                                                                

                                                                                

                                                                                

24  PROFESSIONAL PREPARATION SERVICES                                           

                                                                                

25      Sec. 501.  From the funds appropriated in part 1 for professional           

                                                                                

26  preparation services, the department shall maintain the professional        


                                                                                

1   personnel register and certificate revocation/felony conviction             

                                                                                

2   files.                                                                      

                                                                                

3       Sec. 502.  The department shall authorize teacher preparation               

                                                                                

4   institutions to provide an alternative program by which up to 1/2 of        

                                                                                

5   the required student internship or student teaching credits may be          

                                                                                

6   earned through substitute teaching.  The department shall require that      

                                                                                

7   teacher preparation institutions collaborate with school districts to       

                                                                                

8   ensure that the quality of instruction provided to student teachers is      

                                                                                

9   comparable to that required in a traditional student teaching               

                                                                                

10  program.                                                                    

                                                                                

                                                                                

                                                                                

11  EDUCATION OPTIONS, CHARTERS, AND CHOICE                                     

                                                                                

12      Sec. 601.  From the amount appropriated in part 1 for education             

                                                                                

13  options, charters, and choice, the department shall allocate                

                                                                                

14  sufficient funds to administer charter school legislation and               

                                                                                

15  associated regulations, to coordinate the activities of the department      

                                                                                

16  relating to charter schools, and to address the findings in the office      

                                                                                

17  of the auditor general audit report of June 2002.                           

                                                                                

                                                                                

                                                                                

18  GRANTS AND DISTRIBUTIONS                                                    

                                                                                

19      Sec. 701.  The department shall disburse the funds to a general             

                                                                                

20  fund grantee in accordance with the same standards of timing and            

                                                                                

21  amount that apply to disbursements made by the department to a federal      

                                                                                

22  fund grantee.  The disbursement shall be restricted to the minimum          

                                                                                

23  amount needed for immediate disbursement by the grantee.  The               

                                                                                

24  department may waive this section if extenuating circumstances warrant      

                                                                                

25  and are substantiated in the grantee's application or other                 


                                                                                

1   appropriate documentation.  A waiver granted pursuant to this section       

                                                                                

2   shall not be effective until 15 days after written notice of the            

                                                                                

3   proposed waiver is given to the state budget director and the               

                                                                                

4   chairpersons of the senate and house appropriations subcommittees           

                                                                                

5   having jurisdiction over the department budget.                             

                                                                                

6       Sec. 702.  The funds appropriated in part 1 for school breakfast            

                                                                                

7   programs shall be made available to all eligible applicant public           

                                                                                

8   school districts as follows:                                                

                                                                                

9       (a) The public school district participates in the federal school           

                                                                                

10  breakfast program and meets all standards as prescribed by 7                

                                                                                

11  C.F.R. parts 220 and 245.                                                   

                                                                                

12      (b) Payment is made for each breakfast served meeting standards             

                                                                                

13  prescribed in subdivision (a).                                              

                                                                                

14      (c) The payment for a public school district is at a per meal rate          

                                                                                

15  equal to the lesser of the district's actual cost, or 100% of the cost      

                                                                                

16  of a breakfast served by an efficiently operated breakfast program as       

                                                                                

17  determined by the department, less federal reimbursement, participant       

                                                                                

18  payments, and other state reimbursement.  Determination of efficient        

                                                                                

19  cost by the department shall be determined by using a statistical           

                                                                                

20  sampling of statewide and regional cost as reported in a manner             

                                                                                

21  approved by the department for the preceding school year.                   

                                                                                

22      (d) The payment determined under subdivision (c) is prorated if             

                                                                                

23  the appropriation in part 1 is not sufficient to fund all payments          

                                                                                

24  determined under this section.                                              

                                                                                

25      Sec. 703.  (1) The funds appropriated in part 1 for school                  

                                                                                

26  readiness programs shall be made available through a competitive            

                                                                                

27  application process as follows:                                             


                                                                                

1       (a) An applicant may be any public or private nonprofit legal               

                                                                                

2   entity or agency other than a local or intermediate school district         

                                                                                

3   except a local or intermediate school district acting as a fiscal           

                                                                                

4   agent for a child caring organization regulated under 1973 PA 116,          

                                                                                

5   MCL 722.111 to 722.128.                                                     

                                                                                

6       (b) Applications shall be submitted in a form and manner as                 

                                                                                

7   required by the department.                                                 

                                                                                

8       (c) Applications shall be reviewed by a diverse interagency                 

                                                                                

9   committee composed of representatives of the department, appropriate        

                                                                                

10  community, volunteer, and social service agencies and organizations,        

                                                                                

11  and parents.                                                                

                                                                                

12      (d) Priority in the recommendation for awarding of grants by the            

                                                                                

13  superintendent of public instruction to applicants shall be based upon      

                                                                                

14  the following criteria:                                                     

                                                                                

15                                                                               (i) Compliance with standards for early childhood development                       

                                                                                

16  consistent with programs for 4-year-olds, as approved by the state          

                                                                                

17  board of education.                                                         

                                                                                

18      (ii) Active and continuous involvement of the parents or guardians           

                                                                                

19  of the children participating in the program.                               

                                                                                

20      (iii) Employment of teachers possessing proper training in early             

                                                                                

21  childhood development, including an early childhood (ZA) endorsement        

                                                                                

22  or child development associate, and trained support staff.                  

                                                                                

23      (iv) Evidence of collaboration with the community of providers in            

                                                                                

24  early childhood development programs including documentation of the         

                                                                                

25  total number of children in the community who would meet the criteria       

                                                                                

26  established in subparagraph (vi), and who are being served by other          

                                                                                

27  providers, and the number of children who will remain unserved by           


                                                                                

1   other community early childhood programs if this program is funded.         

                                                                                

2       (v) The extent to which these funds will supplement other federal,          

                                                                                

3   state, local, or private funds.                                             

                                                                                

4       (vi) The extent to which these funds will be targeted to children            

                                                                                

5   who will be at least 4, but less than 5, years of age as of December 1      

                                                                                

6   of the year in which the programs are offered and who show evidence of      

                                                                                

7   2 or more "at-risk" factors as defined in the state board of education      

                                                                                

8   report entitled, "children at risk" that was adopted by the state           

                                                                                

9   board on April 5, 1988.                                                     

                                                                                

10      (e) Whether the application contains a comprehensive evaluation             

                                                                                

11  plan that includes implementation of all program components required        

                                                                                

12  and an assessment of the gains of children participating in an early        

                                                                                

13  childhood development program.                                              

                                                                                

14      (f) Applications shall provide for the establishment of a school            

                                                                                

15  readiness advisory committee that shall be involved in the planning         

                                                                                

16  and evaluation of the program and provides for the involvement of           

                                                                                

17  parents and appropriate community, volunteer, and social service            

                                                                                

18  agencies and organizations.  There shall be on the committee at least       

                                                                                

19  1 parent or guardian of a program participant for every 18 children         

                                                                                

20  enrolled in the program, with a minimum of 2 parent or guardian             

                                                                                

21  representatives.  The committee shall do all of the following:              

                                                                                

22                                                                               (i) Review the mechanisms and criteria used to determine referrals                  

                                                                                

23  for participation in the school readiness program.                          

                                                                                

24      (ii) Review the health screening program for all participants.               

                                                                                

25      (iii) Review the nutritional services provided to all                        

                                                                                

26  participants.                                                               

                                                                                

27      (iv) Review the mechanisms in place for the referral of families             


                                                                                

1   to community social service agencies, as appropriate.                       

                                                                                

2       (v) Review the collaboration with and the involvement of                    

                                                                                

3   appropriate community, volunteer, and social service agencies and           

                                                                                

4   organizations in addressing all aspects of education disadvantage.          

                                                                                

5       (vi) Review, evaluate, and make recommendations for changes in the           

                                                                                

6   school readiness program.                                                   

                                                                                

7       (g) More than 50% of the children participating in the program              

                                                                                

8   shall meet the income eligibility criteria for free or reduced price        

                                                                                

9   lunch, as determined under the national school lunch act, chapter 281,      

                                                                                

10  60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to          

                                                                                

11  1766b, and 1769 to 1769h, or meet income and all other eligibility          

                                                                                

12  criteria for participation in the Michigan family independence agency       

                                                                                

13  unified child day care program.                                             

                                                                                

14      (2) Grant awards by the superintendent of public instruction may            

                                                                                

15  be at whatever level the superintendent determines appropriate.  A          

                                                                                

16  grant, when combined with other sources of state revenue for this           

                                                                                

17  program, shall not exceed $3,300.00 per child or the cost of the            

                                                                                

18  program, whichever is less.                                                 

                                                                                

19      (3) Except as otherwise provided, an applicant that receives a              

                                                                                

20  2003-2004 grant under this section shall also receive priority for          

                                                                                

21  fiscal years 2004-2005 and 2005-2006 funding.  However, after 3 fiscal      

                                                                                

22  years of continuous funding, an applicant will be required to compete       

                                                                                

23  openly with new programs and other programs completing their third          

                                                                                

24  year.  All grant awards are contingent on the availability of funds         

                                                                                

25  and documented evidence of grantee compliance with standards for early      

                                                                                

26  childhood development consistent with programs for 4-year-olds, as          

                                                                                

27  approved by the state board of education, and with all operational,         


                                                                                

1   fiscal, administrative, and other program requirements.  A program          

                                                                                

2   which offers supplementary day care and thereby offers full-day             

                                                                                

3   programs as part of its early childhood development program shall           

                                                                                

4   receive priority in the allocation of competitive funds.                    

                                                                                

5       Sec. 704.  From the funds appropriated in part 1 for national               

                                                                                

6   board certification, the department shall pay 1/2 of the application        

                                                                                

7   fee for teachers who are deemed by the department to be qualified to        

                                                                                

8   apply to the national board for professional teaching standards for         

                                                                                

9   professional teaching certificates or licenses and to provide grants        

                                                                                

10  to recognize and reward teachers who receive certification or               

                                                                                

11  licensure.                                                                  

                                                                                

12      Sec. 705.  Before expending funds for DED-OESE, title IV, part A,           

                                                                                

13  community service grants and DED-OESE, title IV, part B, 21st century       

                                                                                

14  community learning centers, the department shall provide an assurance       

                                                                                

15  to the United States department of education that the application was       

                                                                                

16  developed in consultation and coordination with appropriate state           

                                                                                

17  officials, including the chief state school officer, and other state        

                                                                                

18  agencies administering before and after school programs, the heads of       

                                                                                

19  the state health and mental health agencies or their designees, and         

                                                                                

20  representatives of teachers, parents, students, the business                

                                                                                

21  community, and community-based organizations.                               

                                                                                

                                                                                

                                                                                

22  SAFE SCHOOLS AND ADMINISTRATIVE LAW                                         

                                                                                

23      Sec. 801.  The department shall furnish a report to the                     

                                                                                

24  legislature on teacher tenure by December 31, 2003.  The report shall       

                                                                                

25  include at least all of the following:                                      

                                                                                

26      (a) A history of teacher tenure in this state.                              


                                                                                

1       (b) A statement of the purpose of teacher tenure and an assessment          

                                                                                

2   of the current need for teacher tenure.                                     

                                                                                

3       (c) A history of administrative law cases related to teacher                

                                                                                

4   tenure.                                                                     

                                                                                

5       (d) The number of teacher tenure cases heard by administrative law          

                                                                                

6   judges for the most recent year for which data is available.                

                                                                                

7       (e) An estimate of the cost incurred by the department related to           

                                                                                

8   teacher tenure.                                                             

                                                                                

                                                                                

                                                                                

9   INFORMATION TECHNOLOGY                                                      

                                                                                

10      Sec. 901.  The department shall work in collaboration with the              

                                                                                

11  center for educational performance and information to support the           

                                                                                

12  comprehensive educational information system and all data collection        

                                                                                

13  efforts of the department.                                                  

                                                                                

14      Sec. 902.  The department and the Michigan virtual university               

                                                                                

15  shall work collaboratively to implement section 98 of the state school      

                                                                                

16  aid act of 1979, 1979 PA 94, MCL 388.1698, in accordance with all           

                                                                                

17  applicable federal laws and regulations.